Decentralized crypto exchange KiloEx has been in the spotlight after falling victim to a cross-chain attack, resulting in the loss of approximately $7.4 million. The protocol, which is supported by YZi Labs (formerly known as Binance Labs), has taken swift action in response to the breach, leveraging the support of blockchain security firms and various networks to address the issue.
The breach at KiloEx was attributed to a vulnerability in its price oracle system, prompting the platform to suspend its operations temporarily. In a bid to recover the stolen funds, KiloEx has reached out to the hacker directly, presenting a proposal that includes freezing the stolen assets and offering a 10% bounty for the return of 90% of the funds within a 72-hour window.
The exchange has made it clear that if the hacker fails to comply with their demands, they are prepared to escalate the situation by involving law enforcement and cybersecurity partners. KiloEx has also emphasized that the hacker’s identity and activities will not remain hidden, as they are prepared to expose this information to relevant authorities.
This incident comes amidst a concerning trend of attacks within the decentralized finance sector, with Q1 of this year alone seeing a staggering $1.65 billion in reported losses due to crypto exploits. This highlights the pressing need for enhanced security measures and increased vigilance within the crypto space to safeguard against such breaches.
In a public statement, KiloEx expressed their commitment to pursuing all available avenues to address the breach and recover the stolen funds. The exchange has called upon other protocols and platforms to blacklist the attacker’s wallet in an effort to prevent further malicious activity.
KiloEx’s handling of this breach serves as a reminder of the inherent risks involved in the crypto space and the importance of proactive security measures. As the industry continues to evolve, it is crucial for all stakeholders to remain vigilant and proactive in safeguarding against potential threats.
As the situation unfolds, KiloEx remains determined to secure a resolution to this breach and ensure the integrity of its platform moving forward. With the support of law enforcement, cybersecurity agencies, and industry partners, the exchange is poised to take the necessary steps to address this incident and prevent similar attacks in the future.